How to Start a Sole Proprietorship in BC

What a sole proprietorship is in BC

It's you, doing business. No corporation, no partners, no legal separation between you and the business. You keep all the profit - and you're personally on the hook for all the debt. BC's version is one of the cheapest registrations in Canada ($70 all-in) and it never needs renewing, which makes it the natural first step for freelancers, contractors, and side businesses.

The trade-off in one line: simple and cheap to run, zero liability protection. If the money or the risk gets serious, talk to an accountant about incorporating - and read our guide to incorporating in BC or the national sole proprietorship walkthrough for the cross-Canada tax picture.

Step 1: Get your business name approved

BC does name approval first, registration second. Skip this only if you operate under your exact personal name - nothing added. Otherwise:

• Submit a name request to BC Registries online - $30, up to three names in order of preference, so a rejected first choice doesn't sink the request.
• The province checks your names against existing corporations and misleading or offensive names. Approval reserves your name for 56 days; finish the registration inside that window.
• Need it fast? Priority processing costs $100 extra and gets a decision in 1 to 2 business days.

Step 2: Register with BC Registries

With your approved name in hand, file the sole proprietorship registration:

• Cost: $40, one-time. The provincial fee schedule lists basic fee $40 plus the $30 name approval already paid - $70 total. There is no annual BC Registry fee for sole proprietorships and no renewal cycle, unlike Ontario's 5-year registrations.
• File online with a BC Services Card account, or in person at a Service BC location.
• Watch the deadline: the Partnership Act requires you to file within 3 months of first using the business name. Don't treat registration as something to get around to.
• Changes cost nothing after registration: address changes, activity changes, or fixing a spelling mistake are all free - but switching to or from a sole proprietorship means registering a new business entirely.

Step 3: Get your municipal business licence

BC has no general provincial business licence for sole proprietors - but your municipality probably does. Vancouver, Surrey, Victoria and most other BC cities require a business licence to operate inside their boundaries, and the rules and fees are set city by city. Find your city's business licence page and apply there before you open for business.

Step 4: Handle the two taxes

BC is a two-tax province - GST and PST, separate systems:

• GST at 5% is the federal side: free registration through the CRA's Business Registration Online. The $30,000 small-supplier threshold applies exactly as everywhere else - over $30,000 in taxable sales across four consecutive calendar quarters and registration becomes mandatory.
• PST at 7% is the provincial side: the sales tax on taxable goods and specified services, administered by the BC Ministry of Finance (register through eTaxBC). PST is not recoverable through input tax credits - unlike GST, every dollar you pay on inputs is a real cost. Small sellers - under $10,000 a year in gross retail sales and with no established business premises - are exempt from registering (Bulletin PST 003).
• One thing to skip: the planned October 1, 2026 expansion of PST to professional services (accounting, bookkeeping, engineering, security, non-residential real estate) was paused - see Notice 2026-001. Don't build your pricing around collecting PST on services unless the province revives it.
• Income tax works differently from sales tax: your net profit goes on your personal T1 return (form T2125) - taxed at your marginal rates, nothing withheld from invoices, so set money aside as you earn.

If the $30,000 threshold is in sight, read our GST/HST registration guide for the route-by-route walkthrough.

Step 5: WorkSafeBC and hiring

• If you stay solo, WorkSafeBC coverage is optional for sole proprietors. You can opt in for personal injury coverage if the work is physical, but nothing requires it.
• Once you hire workers, registration becomes mandatory the moment you have them. Open a CRA payroll (RP) account at the same time - you'll withhold income tax plus CPP and EI from every paycheque and remit it.

After you register

• Open a business bank account - you'll need your registration document plus your SIN or BN.
• Keep the registration details current. Changes are free, but there's no reminder system: it's on you.
• If you close the business, dissolve the registration so the name is no longer tied to you.

Startup checklist

• Name request approved by BC Registries ($30) - or confirmed exempt as own-name-only
• Registration filed within 3 months of first using the name ($40)
• Municipal business licence from the city where you operate
• CRA business number obtained (free)
• PST account registered via eTaxBC if selling taxable goods above the small-seller line
• Tracking revenue against the $30,000 rolling GST threshold
• WorkSafeBC registered when you hire workers; CRA payroll account opened
• Invoices show GST separately with your business number; a fixed slice of every invoice set aside for income tax + CPP

Related guides

• How to Register a Sole Proprietorship and Get a GST/HST Number in Canada - the national walkthrough: the $30,000 rule, the quick method, and the full tax picture.
• How to Incorporate in British Columbia - when the liability or the tax bill says it's time: the $30 name request, $350 filing, and the $43.39 annual report.
• Do You Need a GST Number as a Sole Proprietor in Canada? - voluntary registration, input tax credits, and when waiting is smarter.
• Sole Proprietorship vs Incorporation - the quiz - five questions that point you at the right structure before you file.
• Business Bank Account for Sole Proprietors in Canada - what sole proprietors actually need to open an account: your registration document, SIN vs BN, and the fee picture.
• How to Start a Sole Proprietorship in Yukon - the same walkthrough for Yukon: $25 declaration, municipal licences, and GST-only taxes.

Sources

• Sole proprietorships and partnerships — Province of British Columbia — $30 name request, 56-day reservation, $100 priority service in 1 to 2 business days, own-name exemption, non-resident rule, BC Services Card filing, exclusive use only for corporations, cooperatives and societies (page last updated September 14, 2026)
• Forms, fees and information packages — Province of British Columbia — proprietorship basic fee $40 plus name approval $30, $70 total; changes free (page last updated September 17, 2026)
• Partnership Act, s.88 — BC Laws — registration statement within 3 months of first using the business name; s.89 56-day name reservation; s.93 fee schedule ($40 filing, $30 name search, $100 priority service)
• Notice 2026-001: Notice to providers of professional services — Province of British Columbia — PST expansion to professional services paused; 7% rate; affected services list (page last updated September 21, 2026)
• Bulletin PST 003, Small Sellers — Province of British Columbia — small-seller test: $10,000 or less in gross retail sales in the previous and next 12 months, no established business premises, no wholesale sales (revised July 2026)
• Register a GST/HST account — Canada Revenue Agency — GST/HST registration route; text fetch returned a stale 2024 crawl of the fiscal-year section, $30,000 small-supplier threshold corroborated by the guide's GST/HST registration guide
• T2125 Statement of Business or Professional Activities — Canada Revenue Agency — the form for reporting business or professional income and expenses (2025 fillable PDF available)
• Getting started — WorkSafeBC — self-employed proprietors with no workers don't need coverage; Personal Coverage is optional; hiring workers means mandatory registration